Definition of Tax Havens

What is popularly known as Tax Haven is a territory whose legislation Relating to taxes is especially favorable for those investors not resident in it and who deposit their capital there or establish companies.

In general, these territories allow foreign capital deposited there not to have to pay fees or taxes, or, in the event that they must comply with tax obligations, these are comparatively much more advantageous than in their countries originally. Furthermore, another characteristic of tax havens is their opacity. The existence of regulations that prevent the sending of information to other countries guarantees that the owners of the capital deposited there will not have to render accounts for them in their countries originally.

Why do tax havens exist

Tax havens are born from the coincidence of interests between territories with few resources and the desire of large companies and fortunes to considerably reduce the taxes they must face as a result of their economic activities.

With the intention of attracting that money, these territories implement legislation that makes them an attractive target, and they manage to generate a economic activity around this capital that promotes its development and improves the standard of living of its inhabitants. However, since the existence of a tax haven is based on the making of certain political decisions, the Governments that implement these strategies are also under pressure from countries where such fortunes must be pay tribute.

Due to these pressures, a large part of those considered tax havens have begun to put in place taxation systems. exchange of automated information that, presumably, will make them lose interest in the face of new capital being installed there.

Although having capital in foreign countries is not illegal, their owners are obliged to pay taxes for them in their countries of origin.

The opacity of tax havens makes it possible to avoid this obligation not having constancy of the existence of such money.

In spite of everything, and although the pressures on the countries considered tax havens are constantly increasing, the Capital control in a globalized world like the current one is very complicated, considering that the trend of the organisms international Commerce it is to favor the liberalization of the markets.

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